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What Are The Benefits Of Agrivoltaics?

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Agrivoltaics located above a potato field

Agrivoltaics are quickly gaining momentum as the technology to let power generation and agriculture work hand-in-hand. In this article, we take a few steps back from the political discussions surrounding solar panels and agriculture and focus on the benefits of agrivoltaics.

What is agrivoltaics?​

Agrivoltaics is not a new invention, but it continues to be an innovative approach that allows developers to integrate solar energy production with agricultural activities. By installing solar panels above or between rows of various types of crops, agrivoltaics allows for the dual use of land, enabling farmers to produce food and generate renewable energy simultaneously. This method not only maximizes land use but also supports sustainable farming practices.

Key benefits of agrivoltaics​

Increased land efficiency​

One of the primary benefits of agrivoltaics is its ability to increase land efficiency. Traditional solar farms require large areas of land, often displacing agricultural activities. Agrivoltaics addresses this issue by enabling the same land to be used for both energy production and farming. This dual-use approach reduces the need for additional land and helps optimize space utilization. The German Frauenhofer Institute has been one of the pioneering forces behind sound research into how agrivoltaics can increase land efficiency. 

For example, the institute’s “APV-RESOLA” pilot project demonstrated the efficiency of agrivoltaics with a 194 kWp pilot plant in Heggelbach, Germany. The results in 2017 showed an overall efficiency of 160 percent. The performance of the agrivoltaic system in the summer of 2018 again reached more than this efficiency of land use. During this very hot summer, the shades developed by the PV module protected the crop from failure and enabled the produced a significant amount of energy. Considering the land – use of potatoes in the area, the efficiency of the system in Heggelbach reached 186% in 2018.

The dual use of land for agrivoltaics and potato growing increased land-use efficiency on the Heggelbach test site to 186 percent © Fraunhofer ISE

Enhanced crop yields​

Agrivoltaics can also improve crop yields through shading provided by solar panels. The partial shade from the panels reduces heat stress on plants and leads to less evaporation, leading to healthier crops. This can result in higher productivity and better crop quality overall. Studies have shown that crops grown under solar panels often experience less water stress and improved growth conditions. In studies carried out by Enel Green Power and Agrivoltaico Open Labs, results show that, depending on the crop, crop yields increase between 20-60%.

Sustainability and environmental impact​

The benefits of agrivoltaics extend to environmental sustainability. By combining solar energy production with agriculture, this approach helps minimize land use changes and reduces the environmental footprint of both energy and farming activities. Agrivoltaics supports biodiversity by preserving natural habitats and reduces the need for separate solar farms, thereby limiting land conversion.

Economic advantages​

In addition to environmental benefits, agrivoltaics offers economic advantages. Farmers can generate additional income from selling solar energy while continuing their agricultural operations. This can help offset the costs of implementing solar technology and provide a new revenue stream for farming businesses. Farmland lease prices for photovoltaic (PV) installations range between €3,000 to €3,500 per hectare in Europe, which is a substantial increase compared to the average cost of €357 per hectare

Challenges and considerations

While agrivoltaics presents numerous advantages, there are some challenges to consider. Initial setup costs for solar panels and infrastructure can be high, which affects the levelized cost of energy quite much in certain regions. In fact, estimates show that the LCOE relative to a ground-mounted PV installation can be north of 100% in some Scandinavian regions and some parts of the UK. 

Additionally, the design and installation of agrivoltaic systems need to be carefully planned to ensure they do not negatively impact crop growth or farming practices, but also to make sure that they meet the definitions of an agrivoltaic plant. 

The future outlook for agrivoltaics​

The future of agrivoltaics is promising as technology continues to advance. Innovations in solar panel design, efficiency improvements, and better integration techniques will likely enhance the effectiveness of agrivoltaic systems. As more projects are developed and research expands, agrivoltaics is expected to play a significant role in sustainable agriculture and renewable energy.

Another thing worth noting is the political pressure to safeguard agricultural land from being used solely to produce solar energy, as was the case in Italy. The good news is that last year, the European Commission approved Italy’s €1.7 billion Italian State aid scheme under the Recovery and Resilience Facility to support 1.04 GW of agrivoltaic installations by 2026, and it is likely that other EU counties will follow this trend, pushing for more solar power where agriculture and renewable energy co-exist.  

Final thoughts​

In conclusion, the benefits of agrivoltaics include increased land efficiency, enhanced crop yields, and positive environmental impacts. By integrating solar panels with farming activities, agrivoltaics provides a sustainable solution for both energy production and agriculture. For more information on how agrivoltaics can transform your farming practices and contribute to sustainability, explore our resources or contact us.

What crops work best with agrivoltaics?

Agrivoltaics works best with shade-tolerant crops. Lettuce, for example, is a prime candidate for dual-use planting. Other crop species adapted to understory growth can also work well, including chiltepin peppers and some types of tomatoes.

What does a higher crop yield mean?

A high crop yield is a field or crop that produces a lot of food in comparison to the area in which it was grown

Why does the crop yield increase?

Solar panels provide shade, and a little shade isn’t bad for the plants, and the soil, considering that our summers are getting hotter and hotter with longer and longer dry spells. So, by having panels installed above the crops, the soil can retain more moisture and create a more favorable microclimate. This also means less irrigation, reducing costs and risks, as periods of drought are increasingly frequent.

What’s the potential for agrivoltaics?

According to Frauenhofer ISE, there is currently 14GW of agrivoltaic capacity installed globally. Previous studies from the EU Science Hub concluded that installing agrivoltaics on 1% of farmland would alone help to surpass the EU’s 2030 goal by providing 944 GW of direct current.  

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